Acting Chief Minister Nicole Manison has been ruled out in the race to become leader of the NT

Nicole Manison has been ruled out as the next Chief Minister of the Northern Territory. SEE WHO IS NOW THE FAVOURITE

UPDATED FRIDAY 10.45AM: NICOLE Manison has been ruled out as the next Chief Minister of the Northern Territory.

A high ranking source has told the NT News Ms Manison was unsuccessful in her bid to be Chief Minister during a caucus meeting on Friday morning.

The NT News understands Natasha Fyles is the most likely contender.

An announcement is expected at 11am.

THE Labor caucus is locked in a room right now trying to work out a factional deal for the leadership of the Northern Territory.

It’s understood the caucus meeting that will decide the fate of the Labor leadership began on Friday morning.

The Right and the Left are both pushing for their respective favourites Nicole Manison and Natasha Fyles to win.

If they can’t work out a leader they can unanimously support, then the question will be put to a vote of Labor’s rank and file in a four-week ballot.

EXPLAINER: HOW IT ALL WORKS

SPECULATION has reached a fever-pitch with who will be the next Chief Minister of the Northern Territory.

Key to deciding who walks out of caucus as leader on Friday - if they even can decide on a leader - will be Territory Labor’s strongly entrenched factional system.

The NT News understands the meeting will be held sometime on Friday morning within Parliament House, but nailing down any further specifics has been difficult.

There are 14 caucus members of the Parliamentary Labor Party.

Under Labor’s leadership rules, if only one person contests the leadership, the Territory will have a new Chief Minister by Friday afternoon.

But if two or more parliamentarians put their hand up to contest the ballot, then the party is forced to expand the vote to include its rank-and-file members in a process that could take four weeks to resolve.

Under Territory Labor’s rules, the Parliamentary Labor Party’s vote and the rank-and-file vote are weighted 50-50 each.

Originally published as Acting Chief Minister Nicole Manison has been ruled out in the race to become leader of the NT